There does seem to be a bug there. Basically this setting was added as a supplement for a user who has edit permissions and create child page permissions on some existing pages, he could not create root level pages nor make root the parent of existing pages he could edit unless he also has this permission.
But, I see how it would/should be expected that users in these roles would see the new page icon and be able to create pages. However, if we do that I think it may also be strange that the user can create root level pages but not be able to make child pages. Maybe we should change the label also and make this "Roles that Can Create Pages" not just root pages. This way we have the ability to give some users general page creation permissions, and other users we can limit to a section of the site by only giving them Create Child Page Permissions on a page we already created without giving them general page creation permissions. Thats is really what the intention of this setting was.
I will fix this for the next release.
Thanks,
Joe